India to push for longer validity of WTO food subsidy waiver

India’s consent to the temporary waiver being negotiated at the World Trade Organisation (WTO) to allow developing countries to go beyond their permitted food subsidy limits will depend on its duration and the food items covered by it.

The Government may also not agree to possible conditions attached to the waiver such as linking it to international availability of foodgrain and global prices as proposed by some developed countries, a Commerce Department official told Business Line .

“We want the temporary waiver or the peace clause to be in place for much longer than the three years being offered by developed countries and all major foodgrains should be covered by it. The waiver should be applicable irrespective of the global market situation,” the official said.

A group of more than 40 developing countries including India, Indonesia and the Philippines, formally known as the G-33, have been trying to convince the WTO to amend its farm pact (Agreement on Agriculture) to remove limits on public stock holding and food aid.

It is important for India to get a waiver because once its new Food Security legislation, which offers 5 kg of subsidised foodgrain to about two-third of its population, is fully implemented, it will breach the existing food subsidy limits fixed at 10 per cent of total production.

In return, these countries will support a Trade Facilitation agreement being pushed by developed countries to improve customs infrastructure and ensure time-bound clearance of shipments.

WTO members are hopeful of signing both agreements at the meeting of trade ministers from all 149 member countries in Bali, Indonesia, in December. These pacts are expected to give a boost to the Doha Round of negotiations launched in 2001.

The global trade talks have been stuck due to differences between developed and developing country members over market access issues for both farm and industrial goods.

In a meeting of the Committee on Agriculture at the WTO on Monday, the Chairperson noted that at this stage, members do not envisage changing the rules of the Agriculture Agreement.

“Instead, they are focusing on a shorter term way of allowing developing countries some leeway to exceed their agreed domestic support limits when they buy, stock and supply cereals and other food in order to boost food security among the poor,” Chairperson John Adank of New Zealand said.

There is also no agreement on what safeguards would be available to prevent the release of the stocks from affecting international markets, and how countries using the provisions would provide enough information to make their actions transparent.

The G-33 wants to ensure that any agreement for a waiver should also include a time-line for negotiating changes in the AoA to ensure that higher good subsidy limits become part of the pact.

> amiti.sen@thehindu.co.in

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